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Monday, September 25, 2023

US stocks join global rally; S&P 500 +2.5pc

US stocks join global rally; S&P 500 +2.5pcNEW YORK: US stocks powered higher Tuesday, rallying with most global equity markets following a rise in Chinese stocks and improved eurozone economic data.

The Dow Jones Industrial Average gained 390.30 points (2.42 percent) at 16,492.68.

The broad-based S&P 500 jumped 48.19 (2.51 percent) to 1,969.41, while the tech-rich Nasdaq Composite Index rose 128.01 (2.73 percent) to 4,811.93.

The gains followed a 2.9 percent rise in China’s volatile Shanghai Index and an upgrade on the reading for eurozone second-quarter economic growth to 0.4 percent from 0.3 percent.

The Wall Street advance also helped offset deep losses last week when China fears led to a 3.4 percent drop in the S&P 500. The US markets were closed Monday for the Labor Day holiday.

“The market was so oversold after last week, we were probably due for a bounce” said Bill Lynch, director of investment at Hinsdale Associates.

Dow member Apple added 2.7 percent ahead of its expected launch Wednesday of updated iPhones and an Apple TV revamp that may signal a push into online television streaming.

General Electric, another Dow component, surged 4.0 percent on the news European Union and US regulators approved its acquisition of French company Alstom’s energy assets. GE said the deal was worth about $ 9.5 billion following divestments to address antitrust concerns and other transaction changes.

All 30 members of the Dow plowed higher with especially strong gains from Wal-Mart Stores (+3.9 percent), Intel (+3.4 percent) and Pfizer (+3.7 percent).

Other strong sectors included banks like Wells Fargo (+3.2 percent) and Bank of America (+3.3 percent) and biotech companies like Amgen (+5.1 percent) and Celgene (+4.8 percent).

But video streaming company Netflix fell for the seventh straight session, shedding 3.9 percent.

Blackstone rose 5.2 percent after striking a $ 6 billion deal to acquire luxury property giant Strategic Hotels & Resorts, up 3.5 percent.

Media and publishing company Meredith Corporation rose 9.9 percent on news it will be acquired by Media General for about $ 2.4 billion. Media General lost 6.0 percent.

Concordia Healthcare tumbled 11.1 percent on news it will acquire pharmaceutical company Amdipharm Mercury Limited for about $ 3.5 billion.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.19 percent from 2.13 percent Friday, while the 30-year advanced to 2.97 percent from 2.89 percent. Bond prices and yields move inversely.

Copyright AFP (Agence France-Presse), 2015

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